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Governor promises continued financial security despite recession

By Ryan Boetel

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Published: Friday, January 16, 2009

Updated: Friday, January 16, 2009

He didn’t act like a cheerleader, but he wasn’t pessimistic either.

Nebraska Gov. Dave Heineman got to the point during his State of the State address Thursday morning. His message: We’re OK, but we have to fight to keep it that way.

The majority of Heineman’s speech was spent covering his four-point plan to keep Nebraska’s economy afloat while some states and companies are screaming for life vests. Heineman used this plan as a guideline when crafting his draft of the state’s budget.

“Clearly, we are heading into an uncertain economic future,” he said.

First and foremost, Heineman said there will be no tax increase.  He said his budget funds a $230 million property tax credit program that was established two years ago. Without this program, Heineman said middle class families, senior citizens and small businesses would assume a crushing burden.

Second point: make education a priority.

During his 2007 run for governor, Heineman referred to education as a “great equalizer.” He fell back on those same words during yesterday’s speech. The bulk of the new spending in Heineman’s proposed budget, 85 percent, is invested in education.

During the State of the State address, Heineman said his budget would provide an additional $25.6 million to the University of Nebraska’s entire budget.

Kelly Bartling, manager of news for University Communications at UNL, said Heineman’s budget increases by $4.9 million for each of the next two years. That’s a 1 percent increase, meaning the budget would actually shrink when inflation is considered.

The other $15.8 million in additional funding comes from a law Heineman signed in 2006 that allocates money throughout the university system in chunks until 2020 for infrastructure upgrades.

“Everyone has to tighten their budget,” said Sen. Amanda McGill of Lincoln, referring to the university’s budget.

The third point Heineman addressed was that although Nebraska has to watch its spending, it needs to “continue funding programs for vulnerable children and their families.”

Individual agencies will also be encouraged to find ways to save money.

“Our attitude of encouraging agencies to ‘save it and keep it’ is a more businesslike approach than the past practice of ‘spend it or lose it,’” he said.

The fourth and final point Heineman addressed was to avoid dipping into the state’s cash reserve, even when the pressure to do so increases.

“The Cash Reserve is our rainy day fund,” Heineman said. “But we need to be mindful that it is only beginning to rain.”

RYANBOETEL@DAILYNEBRASKAN.COM

 

 

 

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